AI Drafter 
TaxTMI 
TaxTMI 
2011 (12) TMI 649
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....ture. This authority was reminded by counsel for the appellant that this authority had the right not only to consider any question of law that may arise, but also to reassess the facts and consider the correctness of the inference drawn by the authorities below including the State Tribunal. The position appears to be this, except that this authority may have to remember while entering into an appreciation of the evidence and the inferences drawn by the authorities below and the State Tribunal, that it acts as the third court of the appeal and the restriction that would be inherent in the context of this Tribunal being the third appellate authority. The appellant is a public sector Government company engaged in mining of ores of zinc, lead, etc., in the State of Andhra Pradesh and other States. The appellant has also a smelter plant in Vishakhapatnam in the State of Andhra Pradesh. The process of manufacturing of zinc, lead and other by-products takes place at the smelter plant. The appellant is having its offices in various cities including Kolkata. Sales of the products were being effected from variou....
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....ovement of goods within the meaning of sections 3 and 6 of the Act. The appellant is seen to have even pleaded ignorance of the orders of purchase secured by the branch office at Calcutta from IISCO and TISCO based on which the disputed transactions originated. The assessing officer considered the facts which are relevant to the issue. He also considered the aspects projected on behalf of the appellant. On weighing the circumstances thus available and noticing the decisions of the High Court relevant in the context, came to the conclusion that the sale involved was a sale in the course of inter-State trade. The assessing officer therefore assessed the turnover leading to the supply of lead to IISCO and TISCO and imposed tax thereon at the rates prescribed. The appellant took up the matter in appeal. The appellate authority, the Deputy Commissioner (CT), on a reappraisal of the materials, came to the conclusion that the movement of goods was occasioned by the firm orders for purchase placed by the IISCO and TISCO and that the sales came within section 3 of the Act and liable to tax under section 6....
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....rs had specified all the terms, like quantity, unit, purity quality of goods, rate, terms of payment, schedule of delivery, dispatch instructions and so on. It noticed the argument on behalf of the appellant that the excise gate pass-delivery challan, showed that the consignor and the consignee are both, the appellant, that the GR/RR through which metal is transferred also showed the consignor and the consignee, as the appellant, that the way-bill also showed the appellant as the consignor and the consignee, that the stock transfer invoice, the insurance policy, the octroi paid by the appellant in its name and the permit issued by the sales tax authorities of Bihar showing the appellant as the consignor and the consignee and the other circumstances referred to in the order of the Tribunal would lead to the conclusion that there was no sale in the course of inter-State sale in terms of section 3 of the Act. On assessing the weight of these documents in the light of the other circumstances, the Tribunal came to the conclusion that since the movement of goods was triggered by the purchase orders of the buyer....
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....ase. Even in Balabhagas Hulaschand v. State of Orissa [1976] 37 STC 207 (SC) relied on by the appellant, it is indicated that the circumstances have to be appreciated and that to become an inter-State sale, it was not even necessary that the goods be ascertainable before dispatch. In the case on hand, it is seen that specific offers were made by the branch office of the appellant to IISCO and TISCO for sale of their products on the conditions mentioned therein. The conditions were accepted by IISCO and TISCO and they placed orders on the appellant for supply of specified quantities of zinc of specified purity in specified monthly quantities. The authorities below and the Tribunal can- not be faulted for coming to the conclusion that in the circumstances the orders placed by IISCO and TISCO were firm orders for specific quantities of the products. The attempt of the appellant to distance itself from the offers and acceptance secured by the branch office at Kolkata, can only be considered as a desperate attempt to get over the effect of that part of the transaction in assessing the nature of the sale involved ....